The move to liberalise share-trading was announced on January 1 amid growing concern over India’s slowing growth rate and an exodus of overseas capital during 2011.

The ministry of finance in New Delhi said that it hoped the reforms, which are due to come into place by next weekend, would “widen the class of investors, attract more foreign funds and deepen the Indian capital market”.

Until now, foreigners have been allowed to invest in India’s stock markets only via mutual funds or through registered institutions.

International investors may find it easy to resist the temptation after India’s benchmark Sensex index fell 25 percent last year, making it one of the worst-performing equity markets among major economies.

Overseas funds were net sellers of $358 million-worth of Indian stocks in 2011. In the previous 12 months, they bought stock worth $29 billion, according to the Securities and Exchange Board of India, the market regulator.

Analysts say the new regulations are designed to tackle the problem as foreign-buying into Indian stocks was drying up due to slackening domestic growth and global uncertainty.

“This policy is welcome as India needs more capital,” said Hemen Kapadia, chief executive with Chart Pundit, a Mumbai investment advisory firm.

But he told AFP that the move should have come sooner.

“At this stage, it appears to be more out of desperation to improve dollar flows and support a weakening rupee,” he said.

Prime Minister Manmohan Singh’s government spent much of 2011 waylaid by corruption scandals, rather than pushing ahead with economic reforms that kick-started India’s boom 20 years ago.

The market reforms are one small step in the liberalisation programme — and they could also help business confidence, which has taken a hit due to relentless interest rate hikes and the rupee’s slide against the dollar.

Jigar Shah, head of research with Kim Eng Securities, called the new policy “a good move” but said the impact would only be felt over time.

“Money will not immediately come into India as global economic conditions remain very volatile,” he said.

“The domestic macro-economics are unattractive at the moment. But if rates start to fall or if big-ticket reforms come in, the outlook could improve.

“We want to see what the government does at ground-level.”

Nick Paulson-Ellis, the India head of Espirito Santo Securities, agreed. “(The policy) is helpful at the margins,” he said.

But like Shah and Kapadia, Paulson-Ellis does not forecast a major immediate impact.

Shah predicted that foreign nationals will wait for quality offerings — like that for Coal India back in 2010 — before making an entrance in India’s markets.

The state-run Coal India, a mining heavyweight, raised $3.4 billion in November 2010 when it sold a 10 percent stake in an initial public offering (IPO) that was hugely oversubscribed.

Experts will also be keen to read the fine print of the policy guidelines.

Indian companies have specific foreign holding limits and in several blue-chips like HDFC Bank and ICICI Bank, the foreign holding limit has been reached, which may make them inaccessible to new foreign investors.

Shares are also unlikely to rise sharply in coming months, with inflation still high at above nine percent and a weak outlook for corporate earnings.

India emerged relatively unscathed from the global financial crisis in 2008 when domestic demand for goods and services insulated the country from foreign shocks.

But the effect of the eurozone debt crisis and hesitant US recovery is being felt more this time round.

Annual growth in India slid to a two-year low of 6.9 percent in the July-September quarter and the government now expects growth of about 7.5 percent for the 2011-12 fiscal year.

Avinash Vazirani, a fund manager with Britain’s Jupiter Asset Management, said the reform would provide a partial boost after the government’s disappointing withdrawal of plans to open up the retail sector.

“The direct impact on this foreign investment (reform) will be limited but the government’s decision indicates a more investor-friendly stance. It is this that is likely to boost sentiment,” he said.

source form: yahoo

The company, which has agreed to be bought by Google Inc, forecast fourth-quarter sales of $3.4 billion, below analyst expectations for revenue of $3.88 billion, according to Thomson Reuters I/B/E/S.

Motorola Mobility said it expects to report “modest profitability” on a non-GAAP basis in the quarter. It shipped about 10.5 million mobile devices in the quarter, including about 5.3 million smartphones, which run on Google software.

Charter Equity Research analyst Ed Snyder noted that part of Motorola’s weak performance may come from employee distraction due to the upcoming Google deal.

But Snyder said the results were “really bad” and could also be a bad omen for demand in the broader cellphone market especially after wireless chip maker RF Micro Devices inc posted weak quarterly revenue.

Motorola Mobility said it is still working with Google on gaining approval for their proposed deal, which they still expect to close early this year.

It said its revenue forecast includes $900 million in sales for the home business, which makes television set-top boxes.

The company said that the results were hurt by higher legal costs associated with ongoing intellectual property litigation.

Motorola shares fell slightly to $38.30 in after hours trading, after closing at $38.46 on the New York Stock Exchange. Investors have focused less on its operations than on the Google deal since it was announced on August.

source form: yahoo

Stocks have traded in line with the euro over the autumn, with both experiencing sharp swings on headlines from the euro zone.

That trend may be changing, and it comes just as investors get their first glimpse at fourth-quarter U.S. earnings.

Aluminum company Alcoa is expected to report Monday after the closing bell, unofficially starting the reporting period for U.S. corporations. JPMorgan Chase is due to report on Friday, but the bulk of Standard & Poor’s 500 <.SPX> earnings will come in the weeks ahead.

“I think this month we’re probably going to break away and see the pattern of U.S. market trade on U.S. fundamentals rather than in reaction to the euro movement,” said Fred Dickson, chief market strategist, D.A. Davidson & Co. in Lake Oswego, Oregon.

“I think we’re in a time-out period for that (dollar) carry trade, and it will stay a time out for a while.”

The correlation between S&P 500 E-mini futures and the euro, which moved in near lockstep in the fall, has receded. A 22-day moving average of the correlation shows almost no relation between the movements of the two assets.

While the corporate results will be searched for evidence of the European crisis’ impact on overseas sales, they should also bring back more of a focus on what’s happening in the United States, where the economy has been northward bound.

Friday’s U.S. jobs reports was the latest data to suggest the recovery is gathering momentum, with non-farm payrolls rising in December and the jobless rate dropping to a near three-year low of 8.5 percent.

S&P 500 fourth-quarter earnings are expected to have risen 7.8 percent from a year ago, according to Thomson Reuters data. But that number is down from a July 1 forecast for growth of 17.6 percent in the quarter.

“We’re going to need good, strong positive news on earnings to lift all three of the market averages out of their trading ranges,” Dickson said. “They’re bumping into some overhead resistance, and it’s going to take fundamental news to do it.”

The S&P 500 ended virtually unchanged for 2011, even though most strategists had expected gains for the year.

The index has been unable to pierce through 1,285, the closing high set in late October.

Stocks ended with gains for the first trading week of the year, as the mostly upbeat U.S. economic data offset lingering worries about the euro zone. The Dow Jones industrial average <.DJI> was up 1.2 percent for the week, the Standard & Poor’s 500 <.SPX> was up 1.6 percent and the Nasdaq <.IXIC> was up 2.7 percent.

Next week’s economic calendar includes data on U.S. retail sales and consumer sentiment.

Even with a focus on earnings, investors will be watching Italian and Spanish government bond sales next week.

Both are seen as the year’s first big funding tests for struggling euro zone countries. Italy is to pay out 100 billion euros in bond coupons and redemptions in the first four months of 2012.

“Ultimately, the market is still progressing towards a test of the (European Central Bank’s) reluctance to be a lender of last resort. I don’t know that the test will get that far, but I think it will,” said David Joy, chief market strategist at Ameriprise Financial in Boston, where he helps oversee $571 billion in assets under management.

On the earnings front, while all 10 S&P 500 sectors have seen profit estimates cut since July, materials and financials have been the hardest hit. Based on a July forecast, the financial sector was expected to show year-over-year growth of 36.6 percent in the fourth quarter, but the latest forecast is for growth of just 10.1 percent, according to Thomson Reuters data.

Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, which manages about $13 billion, said she has been overweight U.S. equities since the autumn and is considering shifting money into some smaller and midcap names.

“Additional positive momentum in the U.S. can offset additional negative momentum in Europe in terms of earnings impact on U.S. companies,” she said.

“Net net it might spell somewhat better relative performance for U.S. small and midcaps versus the large caps,” she said. “Large caps may give up some of their leadership this year as the U.S. economy continues to gain momentum and small caps start to benefit from that acceleration.”

source form: yahoo

The U.S. market came into the new year revisiting familiar themes, with signs the U.S. economic recovery was gathering speed taking some of the focus off of lingering concerns about the euro zone’s debt crisis.

“The news coming out of Europe was negative all week and we’re going to finish up, and I think that’s a real good performance in light of the background,” said Jack de Gan, chief investment officer at Harbor Advisory Corp inPortsmouth, New Hampshire.

The Dow rose 1.2 percent, the S&P gained 1.6 percent and the Nasdaq added 2.7 percent for the week, with most gains coming from cyclical sectors tied to growth.

Among the week’s largest gainers the KBW bank index <.BKX> jumped 5.7 percent, in contrast with the 2.7 percent fall in the top gauge of European bank stocks <.SX7P>.

Data this week painted a rosier picture on the labor, housing and retail markets, auguring a recovery in growth in 2012. The government’s report on non-farm payroll jobs for December earlier on Friday was the latest in a list of economic numbers that were stronger than anticipated.

On Friday the Dow and S&P edged lower. Worries about higher bond yields in Italy and Spain, as well as potential oil supply disruptions in the Middle East, were cited as giving investors a pause.

Next week brings bond sales by Italy and Spain. Caution ahead of those auctions sent Italian benchmark yields above 7 percent while yields in Spain’s 10-year paper also edged up to end the week at 5.758 percent.

Worries on Wall Street over rising borrowing costs in some euro zone countries kept buying in check on Thursday and Friday.

“There were a lot of fireworks earlier in the week and perhaps there’s a little bit of nervousness going into the weekend with Europe and Iran as concerns,” said Jim Russell, regional investment manager for U.S. Bank Wealth Management in Cincinnati. “It feels like a tired market.”

On Friday, the Dow Jones industrial average <.DJI> dropped 55.78 points, or 0.45 percent, to 12,359.92. The S&P 500 Index <.INX> fell 3.25 points, or 0.25 percent, to 1,277.81. The Nasdaq Composite <.IXIC> gained 4.36 points, or 0.16 percent, to 2,674.22.

Volume remained weak, with about 6.3 billion shares exchanging hands on the New York Stock Exchange, the Nasdaq and Amex, compared with last year’s daily average of 7.84 billion shares.

Investor angst receded and the CBOE volatility index <.VIX> fell almost 12 percent this week.

Best Buy Co shares rose 3.3 percent to $24.22 as the company stood by its profit outlook for the financial year.

Amazon and Netflix helped boost both the Nasdaq Composite and the discretionaries sector of the S&P 500 <.GSPD>. Amazon added 2.8 percent to $182.61 while Netflix gained 8.8 percent to $86.29 and was up nearly 25 percent this week.

Alcoa Inc fell 2.1 percent to $9.16 after the largest U.S. aluminum producer said it will cut global smelting capacity amid a steep drop in metal prices. The Dow component is expected by many Wall Street analysts to post a fourth-quarter loss next Monday.

Roughly eight stocks fell for every seven that rose on the NYSE, while on the Nasdaq slightly more than six issues declined for every five posting gains.

source form: yahoo

The unemployment rate fell in December to 8.5 percent, the lowest level in nearly three years. Yet stock indexes teetered between small gains and losses all day as traders fretted about Europe’s ongoing financial drama.

Italy’s borrowing costs spiked to dangerously high levels and the euro fell to a 16-month low against the dollar. U.S. bank stocks fell on concerns that the debt crisis will spread through the financial industry.

The Dow Jones industrial average ended down nearly 56 points and the S&P had a tiny loss, its first of the year. Both gained more than 1 percent over the first week of 2012.

Most European markets closed lower after new data showed economic sentiment and retail sales falling across the region. Unemployment is stuck at 10.3 percent in the 17 nations that use the euro.

Europe’s debt woes and China’s slowing economy are overshadowing signs of strength in the U.S. economy, said Doug Cote, chief market strategist at ING Investment Management.

“The global risks continue to exert their weight,” Cote said. Ultimately, improving U.S. stronger consumer demand, manufacturing activity and corporate profits will drive U.S. stocks higher, Cote said.

The Dow Jones industrial average fell 55.78 points, or 0.5 percent, to 12,359.92. Alcoa Inc. was the Dow’s biggest loser, slipping 2.1 percent. A Citi analyst forecast that the aluminum maker lost money in the fourth quarter of 2011 for the first time since the recession. Alcoa, which reports earnings Monday, said late Thursday it would close an aluminum smelter in Tennessee and other operations to cut costs.

The latest sign that the labor market is strengthening failed to spur buying by investors. The unemployment rate fell last month to 8.5 percent, while U.S. employers added a net 200,000 jobs, the Labor Department said.

The economy has generated 100,000 or more jobs each month for the past six, the longest such streak since April 2006. The number of people applying for unemployment benefits last week fell, pushing the four-week average of new claims down to its lowest level since June 2008.

In other trading, the Standard & Poor’s 500 index fell 3.25 points, or 0.3 percent, to 1,277.81. The Nasdaq composite index rose 4.36, or 0.2 percent, to 2,674.22.

It was the second day in a row of indecisive trading on the stock market. The Dow and the S&P closed nearly unchanged Thursday. The indexes still had strong gains in this first, shortened trading week of the year. The Dow is up 1.2 percent this week, the S&P 1.6 percent. Trading was closed Monday, when the New Year’s Day holiday was observed.

The euro fell as low as $1.2696 Friday, its lowest point since Sept. 10, 2010. The yield on the 10-year Treasury note fell to 1.97 percent from 2 percent late Thursday as investors put money into low-risk investments. Bond yields fall when demand for them increases.

Italy is now paying 7.09 percent to borrow for 10 years, reflecting investors’ fears that the nation might default. Ireland and Portugal were forced to take bailouts when their ten-year borrowing rates rose above 7 percent.

Unlike those nations, Italy is too big for the rest of Europe to bail out. Leaders of France and Italy met in Paris on Friday to discuss the spiraling debt crisis that threatens to engulf both nations and push much of the region into recession.

In corporate news:

— Family Dollar Stores Inc. plunged 7.5 percent, the most in the S&P 500, after reporting revenue that was less than Wall Street expected.

— Dendreon Corp. jumped 16.3 percent after the drug developer said sales of its prostate-cancer therapy Provenge kept growing in the fourth quarter. Sales of the drug jumped 25 percent over the previous quarter.

— Global Payments Inc. fell 3.4 percent after the processor of credit, debit and gift card payments reported earnings that fell short of analysts’ expectations. Janney Capital Markets analyst Thomas McCrohan said prospects for a sustained increased in profit margins “remain fleeting.”

source form: yahoo

While independent economists say extending the tax cut would boost the economy at a critical time, both parties have been struggling to agree on a compromise deal in a rerun of this year’s budget battles that have knocked investor confidence inWashington’s ability to deal with its fiscal problems.

Both parties are under pressure to strike a deal at a time of economic difficulty. Failure to do so would mean an effective tax hike for millions of voters in 2012, when Republicans and Democrats will face off in presidential and congressional elections.

“The optics politically to be seen blocking an extension of payroll tax is lousy — and neither wants their fingerprints of blame on it for not getting it done before Christmas,” said Ethan Siegal of The Washington Exchange, a private firm that tracks Washington for institutional investors.

Senior party aides predicted on Friday that common ground would be soon be found to extend a reduction of the payroll tax, which helps fund the Social Security federal retirement program, and renew jobless benefits for millions of Americans.

“Everybody figures it will happen. It has to. No one wants to raise taxes or end jobless benefits,” one aide said. “The only real question if it will be next week or the week after.”

KEYSTONE BARGAINING CHIP

Republican lawmakers have been skeptical of extending the tax cut, set to expire on December 31, questioning its stimulative effect on the economy. But party leaders, fearing a voter backlash, have drawn up legislation to woo them and blunt Democratic efforts to paint Republicans as the party of the rich.

House of Representatives Speaker John Boehner, the top U.S. Republican, said on Friday the Republican-controlled chamber would pass his party’s plan, formally unveiled on Friday, early next week.

The measure would be funded largely by extending a pay freeze on federal workers. It includes a provision to speed up development of the Canada-to-Texas Keystone XL oil pipeline project, despitePresident Barack Obama’s threat to veto any Republican effort to link the two issues.

Backers of the project say it will create tens of thousands of jobs and help tackle a chronically high unemployment rate.

Boehner sought to put the ball in Obama’s court, saying, “It is my hope that the president will accept this measure so that Americans can see that we are still capable of working together to the meet the challenges we face.”

The White House rejected the latest Republican proposal, saying its costs needed to be offset in a balanced away and not with budget cuts exempting the rich.

Obama has delayed a decision on the pipeline pending further studies on a new route. That would push the decision past next year’s election and avoid angering environmentalists before the 2012 campaign.

Senate Majority Leader Harry Reid, a Democrat, dismissed the Republican proposal, saying, “If the House sends us their bill with Keystone in it, they are just wasting valuable time because it will not pass the Senate.”

Dozens of House Democrats have backed the Keystone project in the past, raising hopes among Republicans an agreement could be reached on the issue as part of an overall deal to extend the payroll tax.

Boehner crafted the provision to mesh with a proposal already endorsed by 39 Republican senators and one Democrat, Joe Manchin of West Virginia.

“I believe the Senate will pass it,” Republican Senator John Hoeven told Reuters, citing support from unions for construction jobs created by the pipeline, and explaining the measure allows for additional study on the new route through Nebraska.

But a Democratic aide sketched out another scenario – where Democrats drop their proposal for offsetting the cost of the tax payroll cut with a surtax on millionaires in return for Republicans backing off on Keystone.

Another potential area for compromise is on the Republican demand for tougher requirements on eligibility for jobless benefits. They want to gradually reduce the maximum number of weeks for benefits to 59 from 99.

Democratic and Republican aides predicted Reid and Boehner would meet in the next few days to negotiate a final deal.

source form: yahoo

The Republican governor told The Associated Press that both taxes are bad for the long term because they “chase capital away from the state.”

However, he said Tennessee is still in tough economic times and he doesn’t have a way to replace that revenue.

“I don’t think either one of those really are helpful,” Haslam said Thursday. “Right now it’s just hard to figure out how we’re going to replace those.”

The state collected $172 million from the Hall income tax last year and sent more than one-third of that — $62 million — back to the counties and cities where those who paid the tax live.

While the Hall tax isn’t a major source of revenue for the state government, many local governments depend on it for a big portion of their budgets.

Nevertheless, Republican Senate Caucus Chairman Bill Ketron of Murfreesboro has said he would like to eliminate both taxes. He told the AP on Friday that from an economic development standpoint they’re holding the state back because some people are moving elsewhere.

He said he recently talked to one business owner who moved to Florida, which doesn’t have a Hall tax or estate tax, also called the “death tax.”

Ketron said the man called Tennessee a “great place to live, but it’s a terrible place to die.”

The estate tax is based on the difference between the inheritance tax and the “state death tax credit” allowed on the federal estate tax return, according to Tennessee’s Department of Revenue.

Rep. Joe Carr is another opponent of the taxes. The Lascassas Republican didn’t immediately return a call on Friday, but The Daily News Journal in Murfreesboro reported that he recently told a group that he knew of six people who moved out of Tennessee to avoid the estate tax.

“Men and women who have the ability to create jobs are leaving the state,” Carr said.

While the lawmakers would like to eliminate the taxes, they acknowledge this may not be a good time because of budget constraints.

“We can’t be like Congress,” Ketron said. “We have to be very careful and meticulous to see how we replace that lost revenue.”

source form: yahoo

After the prior week’s 7.3% gain in the S&P 500, last week was bound to be a disappointment. Nevertheless, the relatively flat performance last week was pretty good, and certainly better than I expected.

Last week’s trading kept up with the recent level of volatility. The week’s early rally was met with heavy selling on Thursday, as the positive impact of the widely expected ECB rate cut was dampened by comments which sent the yields on the Italian bonds sharply higher. The short-term technical action as of Tuesday’s close warned of a correction.

The market got relief early Friday, as 17 countries agreed to an intergovernmental arrangement to handle budgetary matters, but the UK dissented. Since it was not unanimous, it will not be reflected by changes in any existing EU treaties. This, of course, puts the focus back on the ECB, which will need to take more forceful action.

The bottom line is that we are likely to see more sharp jolts to the stock market between now and year-end. The technical action favors higher prices going into the end of the year as long as the November 25 lows hold.

A gain of another 4% to 6% in the major averages would catch many by surprise, because after every successive market drop, we hear more analysts claim that we are already in a new recession or will enter one soon.

On the back of the surprisingly good monthly jobs numbers on December 2, last Friday’s preliminary reading on consumer sentiment from Reuters/University of Michigan rose to its highest level since June. This is likely a plus for the retail sector.

Click to Enlarge

On Tuesday, we get the latest reading on retail sales which should be helped by the record Black Friday numbers. As the chart indicates, retail sales have exceeded the 2008 peak, and are in a solid uptrend.

The prior uptrend was broken in early 2008, when retail sales topped out by the middle of the year (keep in mind, the economy was then solidly in a recession). Though this is just one economic indicator, in the past these charts have often given us some good insight.

Also on Tuesday, we get the report on business inventories, followed by import and export prices on Wednesday. The economic calendar gets busier on Thursday with jobless claims, producer prices, industrial production and the Philadelphia Fed Survey. Finally, on Friday, we get the Consumer Price Index.

Friday is additionally triple witching—the end-of-the-quarter event when the stock-index futures, stock-index options, and stock options for December all expire. As the name indicates, these days are often accompanied by increased volatility and heavy volume. WHAT TO WATCH

I was looking for a pullback early last week, and the sluggish nature of the rally suggested that by the middle of the week a deeper correction was possible. Friday’s strong performance clearly improved the technical outlook, but the market needs several strong days early this week to indicate prices are ready to accelerate higher.

The sentiment of both newsletter writers and individual investors fluctuates from week to week, but the majority are bullish. The readings are still well below the extreme levels that are typically seen at significant market tops. As you will recall, the sentiment was extremely bearish at the October lows.

(For more on the AAII Sentiment survey, watch “Secrets of the Sentiment Survey.”)

Click to Enlarge

S&P 500 The Spyder Trust (SPY) tested the rising 20-day EMA Thursday at $123.65 and its breakout level (line b) before closing sharply higher Friday.

This low now represents first support, with further levels between $121.35 and $122.50. The daily uptrend (line c) is now at $118.35, with key support at $116.20 and the November 25 lows.

The S&P 500 A/D line turned up Friday, but is still well below major resistance (line d). Important support for the A/D line is at line e and the most recent lows.

A close above $127.50 will signal a test of the October highs of $129.42. The 127.2% Fibonacciretracement target is at $133.26, with the upper trend line resistance (line a) now at $134.

Dow Industrials The Spyder Diamonds Trust (DIA) held up much better than SPY on last Thursday’s drop, as it held well above the rising 20-day EMA (in red).

It tested the October highs last Wednesday, and a decisive close above $122.58 should signal upward acceleration. The 127.2% retracement resistance stands at $125.61, with the upper channel (line f) at $127.

The daily Dow Industrials A/D line is also quite close to its prior highs, and shows a short-term as well as a longer-term pattern of higher lows. Initial support for the A/D line can be found at line h, with further levels at the late November lows. The daily relative performance, or RS analysis (not shown) broke out to the upside last week. Near-term support for DIA sits at $119.64, followed by the gap between $116.18 and $118.41.

Nasdaq-100 The PowerShares QQQ Trust (QQQ) and the high-tech sector continues to be out of favor, as it has failed to outperform since the October lows.

Though it closed higher last week, it is still well below the strong resistance in the $57.50 to $58.50 area. QQQ traded as high as $59.83 in July.

The daily A/D line has turned up and continues to lag, while the daily on-balance volume (OBV) is still below its WMA. Therefore, it would take several weeks before this sector could take a leadership role.

There is still initial support at $54.60 (last Thursday’s low), with more important levels at $53 to $53.50. A close below $53.80 would be negative.

Click to Enlarge

Russell 2000

The iShares Russell 2000 Index Fund (IWM) rallied sharply Friday, closing below the recent highs at $75.39.

A close above this level is likely to mean that IWM will finally overcome the major 61.8% resistance in the $77 area (line a). This would signal a move to the trend line resistance at $80, if not the longer-term resistance in the $84 area.

The daily RS line turned up Friday, and could move through resistance (line d) early this week. This would signal that the small caps are now starting to lead the S&P 500 which is consistent with theJanuary Effect.

The daily OBV was much stronger than prices in October, and is now trying to move back above its WMA. It will take a strong close above the downtrend (line f) to turn bullish.

There is initial support now at $72.22, with the uptrend (line c) now at $68.60. Sector Focus The transportation stocks are an important market sector, so I closely monitor the iShares Dow Jones Transportation ETF (IYT). It started to outperform the S&P 500 in the middle of November, when the RS line moved through its resistance (line i).

IYT has key resistance now at $90.74 (line g), which if overcome should signal a move to the summer’s highs of $98.63 to $101.60.

Volume was heavy on last Thursday’s drop, which has kept the daily OBV below resistance (line j). To confirm the price breakout, one would like to see high volume.

There is initial support at $86.60, with stronger levels now at $84.40.

Click to Enlarge

Despite the sharp drop in the middle of November, the Select Sector SPDR Energy (XLE) has been one of the hottest sectors, up over 24%. The Sector SPDR Industrials (XLI) have also done well, rising 19.8%.

Both have done much better than the less volatile and lower-risk Select Sector SPDR Consumer Staples (XLP) and the Select Sector SPDR Health Care (XLV), which are both up just over 10%.

As I discussed last week, the long-term RS analysis for Select Sector SPDR Health Care (XLV) has deteriorated recently. On the other hand, it will take a few more weeks of positive action for the weekly analysis of the energy and industrial sectors to turn positive.

source form: yahoo

Below is a dividend history chart for NYX, showing historical dividends prior to the most recent $0.30 declared by NYSE Euronext:

In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from NYX is likely to continue, and whether the current estimated yield of 4.45% on annualized basis is a reasonable expectation of annual yield going forward.

Click here to find out which 9 other stocks going ex-dividend you should know about, at DividendChannel.com »

According to the ETF Finder at ETF Channel, NYX makes up 6.17% of the iShares Dow Jones U.S. Broker-Dealers Index Fund ETF (AMEX: IAI) which is trading up by about 1.3% on the day Friday.

See what other ETFs contain NYX » See what other stocks are held by IAI »

In Friday trading, NYSE Euronext shares are currently up about 0.2% on the day.

source form: yahoo

The bill, which includes new austerity measures, is widely expected to be passed by the parliament’s lower chamber on Saturday.

The euro EURUSD -0.31%  rose to $1.3745 from $1.3604 in North American trade late Thursday. However, the euro fell 0.4% against the greenback for the week, according to FactSet Research.

But strategists warned that gains may prove short-lived.

“People are married to the position that the euro/dollar has to fall [so] they are more willing to sell on rallies than buy on dips,” said Douglas Borthwick, managing director of Faros Trading.

“In that sort of market, moves higher in the euro/dollar are more rapid because the market will be continually stopped out of their positions,” he added.

Beleaguered Italian Prime Minister Silvio Berlusconi is expected to follow through on a pledge to step down as early as Sunday, paving the way for a “technocratic” government expected to be led by economist and former European Commissioner Mario Monti, noted Fabio Fois, an economist at Barclays Capital. Read more: Momentum for Monti as Italy scrambles.

The dollar index DXY -0.08%  , which measures the U.S. unit against a basket of six major rivals, slipped to 76.947 from 77.660. The U.S. currency was mostly flat compared with previous week‘s level.

Back in the U.S., consumer sentiment rose to 64.2 in the preliminary reading for November, compared with a final October reading of 60.9, according to the report from the University of Michigan and Thomson Reuters. That is the highest since June. Read details on consumer sentiment

But the encouraging report failed to provide any support to the dollar with investors focused on events abroad.

Trading volume in the foreign exchange market is relatively light this morning due to Veterans Day holiday.

The British pound GBPUSD -0.12%  traded at $1.6058 compared with $1.5924.

The Bank of England, as expected, made no changes to monetary policy on Thursday but is expected to further ramp up its quantitative-easing program in coming months on worries that a slumping economy will pull currently above-target inflation well below target over the medium term.

Against the Japanese yen USDJPY -0.17% , the dollar slipped to ¥77.17 from ¥77.67.

source from: marketwatch